Various sanctions have hit the Russian currency hard in the Russia-Ukraine war. The market value of Bitcoin, a popular cryptocurrency, has gone beyond the ruble. Investors are looking at how Russian President Vladimir Putin will break the economic deadlock.
The war in Russia and Ukraine has hit the Russian economy hard. Vladimir Putin's insistence on jealousy of Ukraine's occupation, however, has led to a sharp devaluation of the Russian currency against the dollar. Now even the virtual currency has overtaken the ruble. The market value of Bitcoin, a popular cryptocurrency, has gone beyond the ruble.
Russia and Ukraine have been at war for weeks. But there are no signs that the war will end. This has caused a huge upheaval in the capital markets and the commodity and cryptocurrency markets are booming. Investment in gold and digital tokens has grown exponentially. The price of Bitcoin crossed 44,000 in the cryptocurrency market on Thursday. As a result, the total capital of the crypto market increased by 2 trillion. Bitcoin and Etherium gained 14 per cent and 12 per cent, respectively, over the past week.
Russia is inferior in terms of investment
Credit ratings agencies hit Vladimir Putin. Meanwhile, Bitcoin beat the Russian ruble on Thursday. With that, Bitcoin's market capitalization rose to 858 billion. The Russian ruble has a market capitalization of 626 billion.
The cryptocurrency market plunged after Russia invaded Ukraine on Thursday last week. The sell-off by investors out of fear led to a loss of nearly 200 billion in the market.
Russia has been subject to trade sanctions by the United States and several European countries. Therefore, Russia is likely to suffer a major economic blow. In addition, Putin hinted at future cryptocurrency transactions to support the dollar. However, the condition of the Russian currency, the ruble, is worse than that of other major currencies. Therefore, it is being said that Russia will find itself in financial difficulties.
Credit rating agencies have recently downgraded Russian credit ratings. Russia's three leading credit rating agencies, S&P, Fitch and Moody's, have said in a recent report that Russia is "poor" in terms of investment.